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Stephen Timms defends 50p landline duty

National Digital Inclusion delegates heard that the 50p per month duty is a 'small price to pay'

Digital Britain minister Stephen Timms has defended the government's
controversial landline duty, arguing that it is the best way to fund the
delivery of high-speed broadband to 90 per cent of the UK by 2017.

"The cost of the landline duty is minimal in relation to the benefits it will
provide for business. It is important that we get on with overseeing the
development of next-generation services," he said.

Timms added that access to high-speed broadband is vital in helping many
businesses, particularly those in rural areas, to compete and thrive in the
current economic climate.

"Businesses in rural areas often say that the thing they really need to be
able to compete with those in urban areas is high-speed broadband, so they can
send gigabytes of data across the network," he said.

"The £1bn landline duty is intended to provide just that by enabling the
creation of next-generation internet speeds in areas that private sector funding
would not otherwise reach."

Last week, Timms announced the formation of Broadband Delivery UK, a body
that will oversee investment in the next-generation network and the universal
service commitment of 2Mbit/s broadband for all by 2012.

Prime minister Gordon Brown underlined the government's desire to narrow the
digital divide in a pre-recorded video played to delegates at the Digital
Inclusion event.

"We are committed to ensuring that the UK becomes the world's first entirely
online nation. We intend to make high-speed broadband available to everyone, and
we will also capitalise on the opportunities of the digital age to offer
services online," he said.